Why Hearst is building a commerce marketplace

Publishers’ commerce businesses can take many forms nowadays, from earning small commissions with in-article affiliate links to creating an entire direct-to-consumer (DTC) product line that turns a publisher into a retailer. But given commerce revenue is down this year for some media companies and the economic slowdown has put restraints on shoppers’ wallets, publishers may need to rethink their commerce strategies. Take Hearst which is in the process of launching a new marketplace in the fourth quarter. The marketplace is meant to be the new hub for the company’s DTC products and licensed products, but it will also be a new sales channel for the brands and products that readers of Hearst’s media brands regularly shop for as well, according to Sheel Shah, Hearst’s svp of consumer products and partnerships on the latest episode of the Digiday Podcast, which was recorded in front of a live audience at the Digiday Publishing Summit on Sept. 20. This is an expansion of the media company’s current commerce shop strategy, which consists of 20 individual online branded shops for nearly all media brands in the Hearst portfolio, including the Oprah Daily Shop and Good Housekeeping Shop. The shops currently sell branded merchandise and licensed goods and are collectively on track to make 500,000 transactions this year, a 15% increase over the previous year’s transactions, according to the company, which declined to share hard revenue figures. Ultimately, Shah hopes that the marketplace can tie together the company’s commerce business — from DTC and licensed products to affiliate links to direct brand deals — and ultimately drive digital subscriptions to the brands in Hearst’s portfolio.